Red Robin Gourmet Burgers Inc. (RRGB) has recently announced that it will unveil a restaurant in Long Island, NY on Jul 28, 2014. Located at West Babylon, NY on West Montauk Highway, the restaurant will offer signature food items like Royal Red Robin Burger and Bottomless Steak Fries, apart from signature Freckled Lemonade.
During the grand opening week, from Jul 28 to Aug 3, 2014, the company will contribute the sales from its signature Freckled Lemonade to the non-profit entity — Alex's Lemonade Stand Foundation.
Red Robin’s unit expansion remains unruffled amid an uncertain economy. With the resurgence of consumer confidence, management accelerated unit openings. Currently, the company operates 500 restaurants across the United States and Canada.
Over the past three years, the company has opened a total of 48 restaurants, relocated three units while closing two. Moreover, the company is exploring new development opportunities in untapped markets of Florida, New York, New Jersey, Chicago and Texas to further enhance its domestic presence.
Overall, we are encouraged with the company’s initiatives including menu innovation, effective marketing strategy, unit expansion and remodeling programs to reinvigorate its brands. We believe the company is well poised to sustain its growth momentum driven by improved guest traffic and innovative offerings. The company has been posting positive comps over the past three years, in sharp contrast to peers who have been struggling amid a sluggish economic environment.
Red Robin Gourmet Burgers sports a Zacks Rank #1 (Strong Buy). Other players in the restaurant industry, which look attractive at current levels, include BJ's Restaurants, Inc. (BJRI), Bloomin' Brands, Inc. (BLMN) and Chipotle Mexican Grill, Inc. (CMG). All these stocks carry a Zacks Rank #2 (Buy).
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